Popular Cinema Chain based in Singapore, owns three cinemas in the suburbs of Orchard, Tampines and Outram. It has prepared budgets for the coming year based upon a ticket price of $20. Particulars rchard Outram Budgeted revenue from ticket sales 1,600,000 $1,200,000 $800,000 Costs: _ Film license $500,000 $400,000 $390,000 Wages and salaries $300,000 $250,000 $160,000 Overheads $500,000 $400,000 $350,000 Total costs $1,300,000 $1 ,050,000 $900,000 Included in the overhead gures are the Oxford Head Office xed costs that amount to $720,000, these have been allocated to each cinema based on budgeted ticket receipts. All other costs are variable. The management are concerned about the Outram cinema and the fact that it is showing a budgeted loss and is considering closing the cinema and selling the site to a Property Developer